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Abitibi Royalties Announces Increase in NI 43-101 Compliant Reserve and Resource Estimates at Malartic CHL Property and 2% NSR Claim, Quebec

Mar 6 2013 12:00AM

Marketwire

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VAL-D'OR, QUEBEC -- (Marketwire) -- 03/06/13 -- Abitibi Royalties Inc. (TSX VENTURE: RZZ) (the "Company" or "Abitibi") is pleased to announce the receipt of the year-end 2012 gold reserve and resource estimate completed by Osisko Mining Corporation ("Osisko") in respect of the Company's interests in the Malartic CHL property and the claim in respect of which the Company holds a 2% net smelter return royalty (the "Royalty").

Abitibi has commissioned Micon International Limited ("Micon") of Toronto, Ontario to: (i) audit the year-end 2012 gold reserve and resource estimate completed by Osisko with respect to the Mammoth/Barnat, and Jeffrey zones only; and (ii) prepare a corresponding National Instrument 43-101 ("NI 43-101) compliant technical report with respect to same.

The Malartic CHL property is the object of a joint venture with Osisko in which Abitibi holds a 30% free carried interest; it hosts the Mammoth/Barnat, and Jeffrey zones. The Charlie-Gouldie gold deposits lie within the single claim held by Osisko in respect of which Abitibi holds the Royalty. Glenn Mullan, President of Abitibi, notes: "Osisko has indicated that the Gouldie pit area is currently scheduled to begin production in November of 2013, thereby providing an expected initial cash flow distribution to Abitibi."

Information regarding the updated reserves and resource estimates for the Canadian Malartic Project was published by Osisko by way of a news release dated February 19, 2013, which can be found under Osisko's issuer profile on Sedar. The information that follows has been provided to Abitibi by Osisko; only the data with respect to the Mammoth/Barnat and Jeffrey zones will be independently audited by Micon:

Table 1 - Mammoth/Barnat Pit Proven & Probable Reserves Estimate(1), (2)

---------------------------------------------------------------------------- Ore GradeCategory Area Ore Tons (g/t) Contained Oz----------------------------------------------------------------------------Proven Reserve Mammoth/Barnat 376,300 0.93 11,200----------------------------------------------------------------------------Probable Reserve Mammoth/Barnat 1,638,300 0.94 49,447----------------------------------------------------------------------------Proven & Probable Reserve Mammoth/Barnat 2,014,600 0.94 60,647----------------------------------------------------------------------------



Table 2 - Mammoth/Barnat Pit Resource Estimate(3)

The following Resources are in addition to reserves noted above:

----------------------------------------------------------------------------Category Area Tons Grade (g/t) Contained Oz----------------------------------------------------------------------------Measured Resource Mammoth/Barnat 229,300 1.02 7,523----------------------------------------------------------------------------Total Measured Resource 229,300 1.02 7,523----------------------------------------------------------------------------Indicated Resource Mammoth/Barnat 1,842,200 0.77 45,574----------------------------------------------------------------------------Total Indicated Resource 1,842,200 0.77 45,574----------------------------------------------------------------------------Measured & Indicated Resource Mammoth/Barnat 2,071,600 0.80 53,097----------------------------------------------------------------------------Total M&I Resource Mammoth/Barnat 2,071,600 0.80 53,097----------------------------------------------------------------------------Inferred Resource Mammoth/Barnat 1,433,700 1.06 48,965----------------------------------------------------------------------------



Table 3 - Jeffrey Proven & Probable Reserves Estimate(1), (2)

---------------------------------------------------------------------------- Ore GradeCategory Area Ore Tons (g/t) Contained Oz----------------------------------------------------------------------------Proven Reserve Jeffrey - - -----------------------------------------------------------------------------Probable Reserve Jeffrey 3,395,200 0.73 79,249----------------------------------------------------------------------------Proven & Probably Reserve Jeffrey 3,395,200 0.73 79,249----------------------------------------------------------------------------



Table 4 - Jeffrey Mineral Resource Estimate(3)

The following Resources are in addition to reserves noted above:

----------------------------------------------------------------------------Category Area Tons Grade (g/t) Contained Oz----------------------------------------------------------------------------Measured Resource Jeffrey - - -----------------------------------------------------------------------------Total Measured Resource - - -----------------------------------------------------------------------------Indicated Resource Jeffrey 5,269,000 0.65 110,696----------------------------------------------------------------------------Total Indicated Resource 5,269,000 0.65 110,696----------------------------------------------------------------------------Measured & Indicated Resource Jeffrey 5,269,000 0.65 110,696----------------------------------------------------------------------------Total M&I Resource 5,269,000 0.65 110,696----------------------------------------------------------------------------Inferred Resource Jeffrey 376,200 0.90 10,842----------------------------------------------------------------------------



Table 5. - Gouldie Proven & Probable Reserves Estimate(1), (2)

---------------------------------------------------------------------------- Ore GradeCategory Area Ore Tons (g/t) Contained Oz----------------------------------------------------------------------------Proven Reserves Gouldie 666,800 0.99 21,151----------------------------------------------------------------------------Probable Reserves Gouldie 500,300 0.83 13,321----------------------------------------------------------------------------Proven & Probable Reserves Gouldie 1,167,100 0.92 34,472----------------------------------------------------------------------------



Table 6 - Gouldie Mineral Resource Estimate(3)

The following resources are in addition to Reserves noted above:

---------------------------------------------------------------------------- Gold Grade Contained GoldCategory Area Tons (g/t) (ounces)----------------------------------------------------------------------------Measured Resources Gouldie 843,700 1.17 31,816----------------------------------------------------------------------------Indicated Resources Gouldie 4,662,800 0.96 143,815----------------------------------------------------------------------------Measured & Indicated Resources Gouldie 5,506,500 0.99 175,631----------------------------------------------------------------------------Inferred Resources Gouldie 857,800 0.83 22,935----------------------------------------------------------------------------



Table 7 - Gouldie Estimated Production subject to Abitibi Royalties interest during calendar year 2013

---------------------------------------------------------------------------- Area (by royaltyMonth area) Tons (metric) Gold Grad (g/t) Contained Ounces----------------------------------------------------------------------------November Gouldie 64,900 0.516 1,076----------------------------------------------------------------------------December Gouldie 231,500 0.934 6,950----------------------------------------------------------------------------Total All 296,300 0.842 8,026----------------------------------------------------------------------------1 Mineral Reserves are reported at a commodity price of US$1,475/oz Au for Gouldie and Barnat and $1,450/oz Au for Jeffrey, and have an effective date of December 31, 2012. Tonnages have been rounded to nearest hundred tonnes. Numbers may not add up due to rounding.2 Mineral Resources are reported exclusive of Mineral Reserves and are determined by Ordinary Kriging and a variable cut-off grade ranging from 0.31 to 0.34 g/t Au. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability3 Rounding as required by reporting guidelines may result in apparent summation differences between tonnes, grade and contained metal content.4 Tonnage and grade measurements are in metric units. Contained gold ounces are reported as troy ounces.5 A Proven Ore Reserve is economically minable part of a Measured Mineral Resource. It includes diluting materials and allowances for losses which occur when the material is mined. A Proven Ore Reserve represents the highest confidence category of reserve estimate.6 A Probable Ore Reserve is the economically minable part of Indicated Mineral Resource. It includes diluting material and allowances for losses which may occur when the material is mined. A Probable Ore Reserve has a lower level of confidence than a Proven Ore Reserve but is of sufficient quality to serve as the basis for decision on the development of deposit.7 Basis for Reserves estimation.



Qualified Person

Mr. Donald Gervais is the qualified person, as defined in NI 43-101, who has reviewed and is responsible for the technical information in this new release, including verification of the data disclosed, the sampling, and the analytical QA-QC data underlying the technical information. Resources and Reserves have been classified following the standards and definitions of the CIM.

A NI 43-101 compliant report, supporting the mineral resources and mineral reserves estimates with respect to the Mammoth/Barnat, and Jeffrey zones, will be finalized and filed on SEDAR within 45 days of the date of this news release. Mr. B. Terrence Hennessey, P.Geo., Mani M. Verma, P. Eng. and Richard Gowans, P.Eng. of Micon will co-author the report.

About Micon International

Since 1988, Micon International has provided consulting services to the international mining industry with particular focus upon mineral resource estimations, metallurgical services, mine design and production scheduling, preparation of pre-feasibility and feasibility studies, independent reviews of mining and mineral properties, project monitoring, independent engineer roles, financial analysis and litigation support. Micon's clients include mining and mineral exploration companies, financial institutions and government agencies from around the world. A particular expertise has been developed in the economic evaluation of mining properties, including studies in support of debt and equity financing. Micon's professional staff has the experience, education and professional credentials to act as Qualified Persons and/or Competent Persons, as required by world-wide regulatory agencies.

About Abitibi Royalties Inc.

Abitibi Royalties holds title to the Luc Bourdon and Bourdon West Prospects (also known as the McFaulds Lake Property) and a 30% free carried interest on the Malartic CHL Property which is the object of a joint venture with Osisko. In addition, the Company holds a 2% net smelter royalty interest in one claim held by Osisko, and may acquire and generate other property and royalty interests.

Forward Looking Statements:

This news release contains certain statements that may be deemed "forward-looking statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or realities may differ materially from those in forward looking statements. Forward looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made. Except as required by law, the Company undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.



Contacts:
Glenn J. Mullan
President
819-824-2808, x 1222
glenn.mullan@goldenvalleymines.com





Source: Marketwire


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